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Visit Gulliver's Island's column >>

GULLIVER'S ISLAND

Until the last dog dies.
Articles Posted: 37  Links Seeded: 2819
Member Since: 3/2009  Last Seen: 5/18/2012

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Does health-care reform bend the cost curve up? --No.

Seeded on Fri Sep 10, 2010 1:28 PM EDT
Read ArticleArticle Source: The Washington Post
health, obamacare, health-reform, congressional-budget-office, ezra-klein, medicaid-services, cost-curve
Seeded by Gulliver's Island
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What you're seeing here isn't the cost curve bending up. It's a one-time increase in the level of spending. That's the big jump in 2014, the year the exchanges and subsidies come online. So when you compare 2014 to 2013, spending growth seems like it's gone up a bunch. But by 2016, we're back to normal. In fact, we're better than normal: "For 2015-19, national health spending is now projected to increase 6.7 percent per year, on average -- slightly less than the 6.8 percent average annual growth rate projected in February 2010."

In other words, 2014 is a one-time increase in spending level as we get 30 million new people covered. After 2014, costs grow more slowly than they would without the health-care reform bill.

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